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A Study On The Technological Effects Of Foreign Direct Investment And The Technological Innovation Of Host Firms

Posted on:2006-01-05Degree:MasterType:Thesis
Country:ChinaCandidate:J F RenFull Text:PDF
GTID:2179360155469966Subject:International finance
Abstract/Summary:PDF Full Text Request
Foreign Direct Investment (FDI)not only can promote one nation' s economy, theoretically, but also can promote the technological ability of host firms by means of its demonstration-imitation effect, competition effect, training effect, linkage effect, concentrating effect and so on. That is to say, The technology spillovers effects of FDI have a strong characteristic of externality. Many analytic demonstrations and studies of technological spillovers grounding on different visual angle, data source and analytical methods , says that there exist positive technological effects among the firms in the advanced countries, and disaccords between the advanced countries and the developing countries for the sake of the technological absorptive ability and local competition market. The main technology provider, namely, MNCs from the advanced countries, which owning more than 80% of advanced technology throughout the whole world, prefer to transferring technology within their own corporate system, nevertheless technology spillovers. Owing to the policy introduction implemented by the host nations, market competition, the reduction of R&D cost and risk elusion, MNCs would inevitably transfer their technology to host firms , maybe unwillingly , but sometimes prepensely. In fact, in the long run, MNCs from the advanced countries play the most important role in the technology transfer to all developing countries. However, many factors such as the backward technological level, the atom-framework production market, the low-level human sources and the incomplete public service in the developing nations, and the strict controlling measures of technological transfer by MNCs, have set a limitto technology transfer from the advanced nations to the developing ones., During the past 20 years, MNCs, which create a successful and convenient platform for study, exchange and co-operate, have done a great job in promoting the technological ability of host firms. As to FDI' s reversing effect in China, it is not FDI that directly led to the backward technology status of host firms, but the absorptive ability of host firms and the default of public system. There are some implications on policy-makers and host firm: to assume the governmental responsibilities of promoting the technological ability of host firms, to stimulate the creativeness of host firms, to build a competitive environment for host firms, to enhance the strategic research and establishment of technology standard, and to think much of how to use the local technological personnel.There is two points of learning innovation in this thesis: On the one hand, such topic in international economics field in China has still been a new theoretical margin. Many studies in the past paid more attention to the interior relation between the technology effects and economy increasing (or all the firms in China) . This thesis fixes itself on the interior relation between the technology effects and the technological ability of host firms. On the other hand, host firms was always explained to accept MNCs' technology passively, so that there exist a high estimate about the real technological ability of host firms,, In this thesis, the author analyses the positive effect of FDI, and the restrictive factors that influence the technology spillovers from MNCs on the basis of host nation,, It will not only be a helpful attempt to enrich and develop the FDI theory , but also provide a theoretical reference for the government and host firms, to realize the industry upgrade and industry competitive ability,,...
Keywords/Search Tags:FDI, Technological Effects, Multi-national Corporate(MNC), Technological Ability of Host Firms
PDF Full Text Request
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